Augusta Capital to lift annualised dividend payments 10% to 5.5c in 2017
Augusta expects its annualised distribution level to increase to 5.5c a share from 5c a year earlier per share paid.
Augusta Capital [NZX: AUG], the listed property investor and fund manager, will lift its dividend payments by 10% in the 2017 year, saying the increase reflected the growth of its funds management business.
Augusta expects its annualised distribution level to increase to 5.5c a share from 5c a year earlier per share paid.
The firm diversified into funds management last year when it bought KCL Property and Investment Property Titles, giving it about 165 properties to manage, with some $1.1 billion in funds under management. In February it gained a Financial Markets Conduct Authority licence as a manager of investment schemes covering property syndicates and managed funds.
The funds management business was valued at between $28 million and $34.8 million by PwC earlier this year, pushing it beyond the threshold of 10% of Augusta's total assets and meaning it will lose its portfolio investment entity (PIE) status from July 1. The company confirmed the loss of PIE status in today's announcement.
"Augusta believes the guidance provided on an increased distribution level further demonstrates the continuing success and growth of the funds management business, following on from the PwC valuation," the Auckland-based company said.
In the year ended March 31, funds management revenue rose 24%, helping drive a 17% gain in annual earnings.
Augusta shares last traded at $1.10 and have gained 10% this year.
(BusinessDesk)
Jonathan Underhill
Fri, 01 Jul 2016
Fri, 01 Jul 2016
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Augusta Capital to lift annualised dividend payments 10% to 5.5c in 2017
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